Sinopec, Asia's largest refiner, is working towards management of its scant cash flow as refining margins continue to deteriorate. In early September Sinopec cut its 2005 full-year capital expenditure plan by 6.5% by Yuan 2 bil to Yuan 58bil as a remedy to tight cash flows.
As a part of this, Sinopec Corp has sold its 40.72% interest in petrochemical plant Sinopec Wuhan Phoenix Co for Yuan 578.1-mil (US$71.4-mil) to China Changjian National Shipping Group. Phoenix was formed in 1992 by Sinopec, Wuhan Petrochemical Industry Co. and many l local financial firms as partners. Phoenix facilities include an 800,000 mta residue fluid catalytic cracker, a 300,000 mta gas fractioning unit and a 35,000 mta polypropylene unit.
Though Sinopec worked to raise output of higher value products including gasoline and processed higher volumes of lower cost sour crudes, the company could not offset the impact of higher import crude costs and fixed domestic selling prices.
21-Oct-05 
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